The Global Tractors Market Growth, COVID-19 impact and Forecast (2021-2025)
Global used car market is segmented based on application as harvesting, tillage, seed sowing,irrigation, spraying and fertilization ; based on Horsepower Type as less than 40 HP, 40 HP to 99 HP, 100 HP to 150 HP, 151 HP to 200 HP. 201 hp to 270 HP, 271 HP to 350 HP and above 350 HP; based on geography as APAC, Europe, North America, and ROW.
Introduction
A tractor refers to a specifically engineered vehicle designed for providing high torque at a slow speed. Tractors are mainly used in the agriculture sector for plowing, tilling, harrowing, disking, and planting.
Apart from this, they are also used for load carriage, earthmoving, and building activities in the construction industry.
Some of the key factors driving the global demand for tractors include rising labour costs, increasing consumption of plant-based food products, rising rural incomes, government incentives, seasonal labour shortages, etc.
The utilization of tractors for agriculture in North America and Europe has been mainstream.
The COVID-19 pandemic outbreak in early 2020, however, has negatively impacted the global tractor market as several construction and agricultural activities came to a halt.
Table of Contents
Market Overview
The global tractor market is expected to grow to $104.60 billion by 2025 at a CAGR of 5.7%
The global agricultural tractor market demand was expected to be at 1,974.7 thousand units in 2019 and is expected to expand at a CAGR of 3.0% from 2020 to 2027
As per the data released by the UN, in 2020, around 58% of the global population lived in urban areas. This number is expected to reach 68% by 2050.
The growing prominence of the “pay as per use” model will boost the demand for innovative machinery in the global market.
Key Trends
Various technological advancements have led to the emergence of advanced tractors with pre-installed GPS and telematics devices.
Leading manufacturers of tractors are expected to focus on improving the safety of tractors by incorporating technologies and remodeling the structure of tractors, thereby eliminating the chances of rollovers.
Key Market Players
The market is dominated by global vendors like Claas group, Deere & Company, Mahindra & Mahindra Ltd, CNH industrial NV, Kuboto corporation
Growth Drivers and Challenges
The tractor market is further being driven by the rising number of farm training programs promoting the use of agricultural machinery on a large scale.
Additionally, governments across several developing countries are also providing subsidies and financial assistance to facilitate the automation of various agricultural processes.
Apart from this, the rising number of building and construction projects is also augmenting the demand for tractors in the construction sector.
The Diminishing Area Under Agriculture is a major concern affecting the tractor industry.
Increased Number of Fragmented Landholding in Asia is causing a slowdown in the growth of sales of tractors.
Additionally, Consolidating Farmland Under Contract Farming & Co-Operative is another major challenge in the tractor market.
The rising demand for mechanization and the increased number of medium-scale farmers are the primary factors that have created a demand for tractor hiring in other countries. This is expected to allow tractor owners to fully utilize their machines while also providing services to farmers who cannot afford their own tractors.